Transcript of National Industrial Recovery Act (1933)

AN ACT
To encourage national industrial recovery, to foster fair competition, and to
provide for the construction of certain useful public works, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled,

TITLE I—INDUSTRIAL RECOVERY

DECLARATION OF POLICY

SECTION 1. A national emergency productive of widespread unemployment and disorganization
of industry, which burdens interstate and foreign commerce, affects the public
welfare, and undermines the standards of living of the American people, is hereby
declared to exist. It is hereby declared to be the policy of Congress to remove
obstructions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof; and to provide for the general welfare by promoting
the organization of industry for the purpose of cooperative action among trade
groups, to induce and maintain united action of labor and management under adequate
governmental sanctions and supervision, to eliminate unfair competitive practices,
to promote the fullest possible utilization of the present productive capacity
of industries, to avoid undue restriction of production (except as may be temporarily
required), to increase the consumption of Industrial and agricultural products
by increasing purchasing power, to reduce and relieve unemployment, to improve
standards of labor, and otherwise to rehabilitate industry and to conserve natural
resources.

ADMINISTRATIVE AGENCIES

SEC. 2. ( a) To effectuate the policy of this title, the President is hereby
authorized to establish such agencies, to accept and utilize such voluntary
and uncompensated services to appoint without
regard to the provisions of the civil service laws, such officers and employees,
an to utilize such Federal officers and employees, and, with the consent of
the State, such State and local officers and employees, as he may find necessary,
to prescribe their authorities, duties, responsibilities, and tenure, and, without
regard to the Classification Act of 1923, as amended, to fix the compensation
of any officers and employees so appointed.

(b) The President may delegate any of his functions and powers under this title
to such officers, agents, and employees as lie may designate or appoint, and
may establish an industrial planning and research agency to aid in carrying
out his functions under this title.

(c) This title shall cease to be in effect and any agencies established hereunder
shall cease to exist at the expiration of two years after the date of enactment
of this Act, or sooner if the President shall by proclamation or the Congress
shall by joint resolution declare that the emergency recognized by section 1
has ended.

CODES OF FAIR COMPETITION

SEC.3. (a) Upon the application to the President by one or more trade or industrial
associations or groups the President may approve a code or codes of fair competition
for the trade or industry or sub- division thereof, represented by the applicant
or applicants, if the President finds (1) that such associations or groups impose
no inequitable restrictions on admission to membership therein and are truly
representative of such trades or industries or subdivisions thereof, and (2)
that such code or codes are not designed to pro- mote monopolies or to eliminate
or oppress small enterprises and will not operate to discriminate against them,
and will tend to effectuate the policy of this title: Provided, That such code
or codes shall not permit monopolies or monopolistic practices : Provided further,
That where such code or codes affect the services and welfare of persons engaged
in other steps of the economic process, nothing in this section shall deprive
such persons of the right to be heard prior to approval by the President of
such code or codes. The President may, as a condition of his approval of any
such code, impose such conditions (including requirements for the making of
reports and the keeping of accounts) for the protection of consumers competitors,
employees, and others, and in furtherance of the public interest, and may provide
such exceptions to and exemptions from the provisions of such code, as the President
in his discretion deems necessary to effectuate the policy herein declared.

(b) After the President shall have approved any such code, the provisions of
such code shall be the standards of fair competition for such trade or industry
or subdivision thereof. Any violation of such standards in any transaction in
or affecting interstate or foreign commerce shall be deemed an unfair method
of competition in commerce within the meaning of the Federal Trade Commission
Act, as amended; but nothing in this title shall be construed to impair the
powers of the Federal Trade Commission under such Act, as amended.

(c) The several district courts of the United States are hereby invested with
jurisdiction to prevent and restrain violations of any code of fair competition
approved under this title; and it shall be the duty of the several district
attorneys of the United States, in their respective districts, under the direction
of the Attorney General, to institute proceedings in equity to prevent and restrain
such violations.

(d) Upon his own motion, or if complaint is made to the President that abuses
inimical to the public interest and contrary to the policy herein declared are
prevalent in any trade or industry or subdivision thereof, and if no code of
fair competition therefor has theretofore been approved by the President, the
President, after such public notice and hearing as he shall specify, may prescribe
and approve a code of fair competition for such trade or industry or subdivision
thereof, which shall have the same effect as a code of fair competition approved
by the President under subsection (a) of this section.

(e) On his own motion, or if any labor organization, or any trade or industrial
organization, association, or group, which has complied with the provisions
of this title, shall make complaint to the President that any article or articles
are being imported into the United States in substantial quantities or increasing
ratio to domestic production of any competitive article or articles and on such
terms or under such conditions as to render ineffective or seriously to endanger
the maintenance of any code or agreement under this title, the President may
cause an immediate investigation to be made by the United States Tariff Commission,
which shall give precedence to investigations under this subsection, and if,
after such investigation and such public notice and hearing as he shall specify,
the President shall find the existence of such facts, he shall, in order to
effectuate the policy of this title, direct that the article or articles concerned
shall be permitted entry into the United States only upon such terms and conditions
and subject to the payment of such fees and to such limitations in the total
quantity which may be imported (in the course of any specified period or periods)
as he shall find it necessary to prescribe in order that the entry thereof shall
not render or tend to render ineffective any code or agreement made under this
title. In order to enforce any limitations imposed on the total quantity of
imports, in any specified period or periods, of any article or articles under
this subsection, the President may forbid the importation of such article or
articles unless the importer shall have first obtained from the Secretary of
the Treasury a license pursuant to such regulations as the President may prescribe.
Upon information of any action by the President under this subsection the Secretary
of the Treasury shall, through the proper officers, permit entry of the article
or articles specified only upon such terms and conditions and subject to such
fees, to such limitations in the quantity which may be imported, and to such
requirements of license, as the President shall have directed. The decision
of the President as to facts shall be conclusive. Any condition or limitation
of entry under this subsection shall continue in effect until the President
shall find and inform the Secretary of the Treasury that the conditions which
led to the imposition of such condition or limitation upon entry no longer exists.

(f) When a code of fair competition has been approved or prescribed by the
President under this title, any violation of any provision thereof in any transaction
in or affecting interstate, or foreign commerce shall be a misdemeanor and upon
conviction thereof an offender shall be fined not more than $500 for each offense
and each day such violation continues shall be deemed a separate offense.

AGREEMENTS AND LICENSES
SEC. 4. (a) The President is authorized to enter into agreement with, and to
approve voluntary agreements between and among, per- sons engaged in a trade
or industry, labor organizations, and trade or industrial organizations, associations,
or groups, relating to any trade or industry, if in his judgment such agreements
will aid in effectuating the policy of this title with respect to transactions
in or affecting interstate or foreign commerce, and will be consistent with
the requirements of clause (2) of subsection (a) of section 3 for a code of
fair competition.

(b) Whenever the President shall find that destructive wage or price cutting
or other activities contrary to the policy of this title are being practiced
in any trade or industry or any subdivision thereof, and, after such public
notice and hearing as he shall specify, shall find it essential to license business
enterprises in order to make effective a code of fair competition or an agreement
under this title or otherwise to effectuate the policy of this title, and shall
publicly so announce, no person shall, after a date fixed in such announcement,
engage in or carryon any business, in or affecting interstate or foreign commerce,
specified in such announcement, unless he shall have first obtained a license
issued pursuant to such relations as the President shall prescribe. The President
may suspend or revoke any such license, after due notice and opportunity for
hearing, for violations of the terms or conditions thereof. Any order of the
President suspending or revoking any such license shall be final if in accordance
with law. Any person who, without such a license or in violation of any condition
thereof, carries on any such business for which a license is so required, shall,
upon conviction thereof, be fined not more than $500, or imprisoned not more
than six months, or both, and each day such violation continues shall be deemed
a separate offense. Notwithstanding the provisions of section 2 (c) , this subsection
shall cease to be in effect at the expiration of one year after the date of
enactment of this Act or sooner if the President shall by proclamation or the
Congress shall by joint resolution declare that the emergency recognized by
section 1 has ended.

SEC. 5. While this title is in effect (or in the case of a license, while section
4 (a) is in effect) and for sixty days thereafter, any code, agreement, or license
approved, prescribed, or issued and in effect under this title, and any action
complying with the provisions thereof taken during such period, shall be exempt
from the provisions of the antitrust laws of the United States.

Nothing in this Act, and no regulation thereunder, shall prevent an individual
from pursuing the vocation of manual labor and selling or trading the products
thereof; nor shall anything in this Act, or regulation thereunder, prevent anyone
from marketing or trading the produce of his farm.

LIMITATIONS UPON APPLICATION OF TITLE

SEC. 6. (a) No trade or industrial association or group shall be eligible to
receive the benefit of the provisions of this title until it files with the
President a statement containing such information relating to the activities
of the association or group as the President shall by regulation prescribe.

(b) The President is authorized to prescribe rules and regulations designed
to insure that any organization availing itself of the benefits of this title
shall be truly representative of the trade or industry or subdivision thereof
represented by such organization. Any organization violating any such rule or
regulation shall cease to be entitled "to the benefits of this title.

(c) Upon the request of the President, the Federal Trade Com- mission shall
make such investigations as may be necessary to enable the President to carry
out the provisions of this title, and for such purposes the Commission shall
have all the powers vested in it with respect of investigations under the Federal
Trade Commission Act, as amended.

SEC. 7. (a) Every code of fair competition, agreement, and license approved,
prescribed, or issued under this title shall contain the following conditions:
(1) That employees shall have the right to organize and bargain collectively
through representatives of their own choosing, and shall be free from the interference
restraint, or coercion of employers of labor, or their agents, in the designation
of such representatives or in self-organization or in other concerted activities
for the purpose of collective bargaining or other mutual aid or protection;
(2) that no employee and no one seeking employment shall be required as a condition
of employment to join any company union or to refrain from joining, organizing,
or assisting a labor organization of his own choosing; and (3) that employers
shall comply with the maximum hours of labor, minimum rates of pay, and. other
conditions of employment, approved or. prescribed by the President.

(b) The President shall, so far as practicable, afford every opportunity to
employers and employees in any trade or industry or subdivision thereof with
respect to which the conditions referred to in clauses (1) and (2) of subsection
(a) prevail, to establish by mutual agreement, the standards as to the maximum
hours of labor, minimum rates of pay, and such other conditions of employment
as may be necessary in such trade or industry or subdivision thereof to effectuate
the policy of this title; and the standards established in such agreements,
when approved by the President, shall have the same effect as a code of fair
competition, approved by the President under subsection (a) of section 3.

(c) Where no such mutual agreement has been approved by the President he may
investigate the labor practices, policies, wages, hours of labor, and conditions
of employment in such trade or industry or subdivision thereof; and upon the
basis of such investigations, and after such hearings as the President finds
advisable, he is authorized to prescribe a limited code of fair competition
fixing such maximum hours of labor, minimum rates of pay, and other conditions
of employment in the trade or industry or subdivision thereof investigated as
he finds to be necessary to effectuate the policy of this title, which shall
have the same effect as a code of fair competition approved by the President
under subsection (a) of section 3. The President may differentiate according
to experience and skill of the employees affected and according to the locality
of employment; but no attempt shall be made to introduce any classification
according to the nature of the work involved which might tend to set a maximum
as well as a minimum wage.

(d) As used in this title, the term "person" includes any individual,
partnership, association, trust, or corporation; and the terms "interstate
and foreign commerce" and "interstate or foreign commerce" include,
except where otherwise indicated, trade or commerce among the several States
and with foreign nations, or between the District of Columbia or any Territory
of the United States and any State, Territory or foreign nation, or between
any insular possessions or other places under the jurisdiction of the United
States, or between any such possession or place and any State or Territory of
the United States or the District of Columbia or any foreign nation, or within
the District of Columbia or any Territory or any insular possession or other
place under the jurisdiction of the United States.

APPLICATION OF AGRICULTURAL ADJUSTMENT ACT

SEC. 8. (a) This title shall not be construed to repeal or modify any of the
provisions of title I of the Act entitled "An Act to relieve the existing
national economic emergency by increasing agricultural purchasing power, to
raise revenue for extraordinary expenses incurred by reason of such emergency,
to provide emergency relief with respect to agricultural indebtedness, to provide
for the orderly liquidation of joint-stock land banks, and for other purposes,
approved May 12, 1933; and such title I of said Act approved May 12, 1933, may
for all purposes be hereafter referred to as the "Agricultural Adjustment
Act."

(b) The President may, in his discretion, in order to avoid conflicts in the
administration of the Agricultural Adjustment Act and this title, delegate any
of his functions and powers under this title with respect to trades, industries,
or subdivisions thereof which are engaged in the handling of any agricultural
commodity or product thereof, or of any competing commodity or product thereof,
to the Secretary of Agriculture.

OIL REGULATION

SEC. 9. (a) The President is further authorized to initiate before the Interstate
Commerce Commission proceedings necessary to prescribe regulations to control
the operations of oil pipe lines and to fix reasonable, compensatory rates for
the transportation of petroleum and its products by pipe lines, and the Interstate
Commerce Commission shall grant preference to the hearings and determination
of such cases.

(b) The President is authorized to institute proceedings to divorce from any
holding company any pipe-line company controlled by such holding company which
pipe-line company by unfair practices or by exorbitant rates in the transportation
of petroleum or its products tends to create a monopoly.

(c) The President is authorized to prohibit the transportation in interstate
and foreign commerce of petroleum and the products thereof produced or withdrawn
from storage in excess of the amount permitted to be produced or withdrawn from
storage by any State law or valid regulation or order prescribed thereunder,
by any board, commission, officer, or other duly authorized agency of a State.
Any violation of any order of the President issued under the provisions of this
subsection shall be punishable by fine of not to exceed $1,000, or imprisonment
for not to exceed six months, or both.

RULES AND REGULATIONS

SEC. 10. (a) The President is authorized to prescribe such rules and regulations
as may be necessary to carry out the purposes of this title, and fees for licenses
and for filing codes of fair competition and agreements, and any violation of
any such rule or regulation shall be punishable by fine of not to exceed $500,
or imprisonment for not to exceed six months, or both.

(b) The President may from time to time cancel or modify any order, approval,
license, rule, or regulation issued under this title; and each agreement, code
of fair competition, or license approved, prescribed, or issued under this title
shall contain an express pro- vision to that effect.

TITLE II—PUBLIC WORKS AND CONSTRUCTION PROJECTS

FEDERAL EMERGENCY ADMINISTRATION OF PUBLIC WORKS

SECTION 201. (a) To effectuate the purposes of this title, the President is
hereby authorized to create a Federal Emergency Administration of Public Works,
all the powers of which; shall be exercised by a Federal Emergency Administrator
of Public Works (hereafter referred to as the " Administrator "),
and to establish such agencies, to accept and utilize such voluntary and uncompensated
services, to appoint, without regard to the civil service laws, such officers
and employees, and to utilize such Federal officers and employees, and, with
the consent of the State, such State and local officers and employees as he
may find necessary, to prescribe their authorities, duties, responsibilities,
and tenure, and, without regard to the Classification Act of 1923, as amended,
to fix the compensation of any officers and employees so appointed. The President
may delegate any of his functions and powers under this title to such officers,
agents, and employees as he may designate or appoint.

(b) The Administrator may, without regard to the civil service laws or the
Classification Act of 1923, as amended, appoint and fix the compensation of
such experts and such other officers and employees as are necessary to carry
out the provisions of this title; and ma-y make such expenditures (including
expenditures for personal services and rent at the seat of government and elsewhere,
for law books and books of reference, and for paper, printing and binding) as
are necessary to carry out the provisions of this title.

(c) All such compensation, expenses, and allowances shall be paid out of funds
made available by this Act.

(d) After the expiration of two years after the date of the enactment of this
Act, or sooner if the President shall by proclamation or the Congress shall
by joint resolution declare that the emergency recognized by section 1 has ended,
the President shall not make any further loans or grants or enter upon any new
construction under this title, and any agencies established hereunder shall
cease to exist and any of their remaining functions shall be transferred to
such departments of the Government as the President shall designate: Provided,
That he may issue funds to a borrower under this title prior to January 23,
1939, under the terms of any agreement, or any commitment to bid upon or purchase
bonds, entered into with such borrower prior to the date o termination, under
this section, of the power of the President to make loans.

SEC. 202. The Administrator, under the direction of the President, shall prepare
a comprehensive program of public works, which shall include among other things
the following: (a) Construction, repair, and improvement of public highways
and park ways, public buildings, and any publicly owned instrumentalities and
facilities; (b) conservation and development of natural resources, including
control, utilization, and purification of waters, prevention of soil or coastal
erosion, development of water power, transmission of electrical energy , and
construction of river and harbor improvements and flood control and also the
construction of any river or drainage improvement required to perform or satisfy
any obligation incurred by the United States through a treaty with a foreign
Government heretofore ratified and to restore or develop for the use of any
State or its citizens water taken from or denied to them by performance on the
part of the United States of treaty obligations heretofore assumed: Provided,
That no river or harbor improvements shall be carried out unless they shall
have heretofore or hereafter been adopted by the Congress or are recommended
by the Chief of Engineers of the United States Army; (c) any projects of the
character heretofore constructed or carried on either directly by public authority
or with public aid to serve the interests of the general public; (d) construction,
reconstruction, alteration, or repair under public regulation or control of
low-cost housing and slum-clearance projects; (e) any project (other than those
included in the foregoing classes) of any character heretofore eligible for
loans under sub- section (a) of section 201 of the Emergency Relief and Construction
Act of 1932, as amended, and paragraph (3) of such subsection (a) shall for
such purposes be held to include loans for the construction or completion of
hospitals the operation of which is partly financed from public funds, and of
reservoirs and pumping plants and for the construction of dry docks; and if
in the opinion of the President it seems desirable, the construction of naval
vessels within the terms and/or limits established by the London Naval Treaty
of 1930 and of aircraft required therefor and construction of heavier-than-air
aircraft and technical construction for the Army Air Corps and such Army housing
projects as the President may approve, and provision of original equipment for
the mechanization or motorization of such Army tactical units as he may designate:
Provided, however, that in the event of an international agreement for the further
limitation of armament to which the United States is signatory, the President
is hereby authorized and empowered to suspend, in whole or in part, any such
naval or military construction or mechanization and motorization of Army units:
Provided further, That this title shall not be applicable to public works under
the jurisdiction or control of the Architect of the Capitol or of any commission
or committee for which such Architect is the contracting and/or executive officer
.

SEC. 203. (a) With a view to increasing employment quickly (while reasonably
securing any loans made by the United States) the president is authorized and
empowered, through the Administrator or through such other agencies as he may
designate or create, (1) to construct, finance, or aid in the construction or
financing of any public works project included in the program prepared pursuant
to section 202; (2) upon such terms as the President shall prescribe, to make
grants to States, municipalities, or other public bodies for the construction,
repair, or improvement of any such project, but no such grant shall be in excess
of 30 per centum of the cost of the labor and materials employed upon such project;
(3) to acquire by purchase, or by exercise of the power of eminent domain, any
real or personal property in connection with the construction of any such project,
and to sell any security acquired or any property so constructed or acquired
or to lease any such property with or without the privilege of purchase: Provided,
That all moneys received from any such sale or lease or the repayment of any
loan shall be used to retire obligations issued pursuant to section 209 of this
Act, in addition to any other moneys required to be used for such purpose; (4)
to aid in the financing of such railroad maintenance and equipment as may be
approved by the Interstate Commerce Commission as desirable for the improvement
of transportation facilities; and (5) to advance, upon request of the Commission
having jurisdiction of the project, the unappropriated balance of the sum authorized
for carrying out the provisions of the Act entitled "An Act to provide
for the construction and equipment of an annex to the Library of Congress",
approved June 13, 1930 (46 Stat. 583); such advance to be expended under the
direction of such Commission and in accordance with such Act: Provided, That
in deciding to extend any aid or grant hereunder to any State, county, or municipality
the President may consider whether action is in process or in good faith assured
therein reasonably designed to bring the ordinary current expenditures thereof
within the prudently estimated revenues thereof. The provisions of this section
and section 202 shall extend to public works in the several States, Hawaii,
Alaska, the District of Columbia, Puerto Rico, the Canal Zone, and the Virgin
Islands.

(b) All expenditures for authorized travel by officers and employees, including
subsistence, required on account of any Federal public-works projects, shall
be charged to the amounts allocated to such projects, notwithstanding any other
provisions of law; and there is authorized to be employed such personal services
in the District of Columbia and elsewhere as may be required to be engaged upon
such work and to be in addition to employees otherwise provided for, the compensation
of such additional personal services to be a charge against the funds made available
for such construction work.

(c) In the acquisition of any land or site for the purposes of Federal public
buildings and in the construction of such buildings provided for in this title,
the provisions contained in sections 305 and 306 of the Emergency Relief and
Construction Act of 1932, as amended shall apply.

(d) The President, in his discretion, and under such terms as he may prescribe,
may extend any of the benefits of this title to any State, county, or municipality
notwithstanding any constitutional or legal restriction or limitation on the
right or power of such State, county, or municipality to borrow money or incur
indebtedness.

SEC. 204. (a) For the purpose of providing for emergency construction of public
highways and related projects, the President is authorized to make grants to
the highway departments of the several States in an amount not less than $400,000,000,
to be expended by such departments in accordance with the provisions of the
Federal Highway Act, approved November 9, 1921, as amended and supplemented,
except as provided in this title, as follows:

(1) For expenditure in emergency construction on the Federal aid highway system
and extensions thereof into and through municipalities. The amount apportioned
to any State under this paragraph may be used to pay all or any part of the
cost of surveys, plans, and of highway and bridge construction including the
elimination of hazards to highway traffic, such as the separation of grades
at crossing, the reconstruction of existing railroad grade crossing structures,
the relocation of highways to eliminate railroad crossings the widening of narrow
bridges and roadways, the building of footpaths, the replacement of unsafe bridges,
the construction of routes to avoid congested areas, the construction of facilities
to improve accessibility and the free flow of traffic, and the cost of any other
construction that will provide safer traffic facilities or definitely eliminate
existing hazards .to pedestrian or vehicular traffic. No funds made available
by this title shall be used for the acquisition of any land, right of way, or
easement in connection with any rail- road grade elimination project.

(2) For expenditure in emergency construction on secondary or feeder roads
to be agreed upon by the State highway departments and the Secretary of Agriculture:
Provided, That the State or responsible political subdivision shall provide
for the proper maintenance of said roads. Such grants shall be available for
payment of the full cost of surveys, plans, improvement, and construction of
secondary or feeder roads, on which projects shall be submitted by the State
highway department and approved by the Secretary of Agriculture.

(b) Any amount allocated by the President for grants under subsection (a) of
this section shall be apportioned among the several States seven-eighths in
accordance with the provisions of section 21 of the Federal Highway Act, approved
November 9, 1921, as amended and supplemented (which Act is hereby further amended
for the purposes of this title to include the District of Columbia), and one-eighth
in the ratio which the population of each State bears to the total population
of the United States, according to the latest decennial census and shall be
available on July 1, 1933% and shall remain available until expended; but no
part of the funds apportioned to any State need be matched by the State, and
such funds may also be used in lieu of State funds to match unobligated balances
of previous apportionments of regular Federal-aid appropriations.

(c) All contracts involving the expenditure 0f such grants shall contain provisions
establishing minimum rates of wages, to be predetermined by the State highway
department, which contractors shall pay to skilled and unskilled labor, and
such minimum rates shall be stated in the invitation for bids and shall be included
in proposals for bids for the work.

(d) In the expenditure of such amounts, the limitations in the Federal Highway
Act, approved November 9, 1921, as amended and supplemented, upon highway construction,
reconstruction, and bridges within municipalities and upon payments per mile
which may be made from Federal funds, shall not apply.

(e) As used in this section the term " State includes the Territory of
Hawaii and the District of Columbia. The term "highway" as defined
in the Federal Highway Act approved November 9, 1921 "as amended and supplemented,
for the purposes of this section, shall be deemed to include such main parkways
as may be designated by the State and approved by the Secretary of Agriculture
as part of the Federal-aid highway system.

(f) Whenever, in connection with the construction of any highway project under
this section or section 202 of this Act, it is necessary to acquire rights of
way over or through any property or tracts of land owned and controlled by the
Government of the United States, it shall be the duty of the proper official
of the Government of the United States having control of such property or tracts
of land with the approval of the President and the Attorney General of the United
States, and without any expense whatsoever to the United States, to perform
any acts and to execute any agreements necessary to grant the rights of way
so required, but if at any time the land or the property the subject of the
agreement shall cease to be used for the purposes of the highway, the title
in and the jurisdiction over the land or property shall automatically revert
to the Government of the United States and the agreement shall so provide.

(g) Hereafter in the administration of the Federal Highway Act, and Acts amendatory
thereof or supplementary thereto, the first paragraph of section 9 of said Act
shall not apply to publicly owned toll bridges or approaches thereto, operated
by the highway department of any State, subject, however, to the condition that
all tolls received from the operation of any such bridge, less the actual cost
of operation and maintenance, shall be applied to the repayment of the cost
of its construction or acquisition, and when the cost of its construction or
acquisition shall have been repaid in full, such bridge thereafter shall be
maintained and operated as a free bridge.

SEC. 205. (a) Not less than $50,000,000 of the amount made avail.; able by
this Act shall be allotted for (A) national forest highways, (B) national forest
roads, trails, bridges, and related projects, ( C ) national park roads and
trails in national parks owned or authorized, (D) roads on Indian reservations,
and (E) roads through public lands, to be expended in the same manner as provided
in paragraph (2) of section 301 of the Emergency Relief and Construction Act
of 1932, in the case of appropriations allocated for such purposes, respectively,
in such section 301, to remain available until expended.

(b) The President may also allot funds made available by this Act for the construction,
repair and improvement of public high- Ways in Alaska, the Canal Zone, Puerto
Rico, and the Virgin Islands.

SEC. 206. All contracts let for construction projects and all loans and grants
pursuant to this title shall contain such provisions as are necessary to insure
(1) that no convict labor shall be employed on any such project; (2) that (except
in executive, administrative, and supervisory positions), so far as practicable
and feasible., no individual directly employed on any such project shall be
permitted to work more than thirty hours in anyone week; (3) that all employees
shall be paid just and reasonable wages which shall be compensation sufficient
to provide, for the hours of labor as limited, a standard of living in decency
and comfort; (4) that in the employment of labor in connection with any such
project, preference shall be given, where they are qualified, to ex-service
men with dependents, and then in the following order: (A) To citizens of the
United States and aliens who have declared their intention of becoming citizens,
who are bona fide residents of the political subdivision and/or county in which
the work is to be performed, and (B) to citizens of the United States and aliens
who have declared their intention of becoming citizens, who are bona fide residents
of the State Territory, or district in which the work is to be performed: Provided,
That these preferences shall apply only where such labor is available and qualified
to perform the work to which the employment relates; and ( 5) that the maximum
of human labor shall be used in lieu of machinery wherever practicable and consistent
with sound economy and public advantage.

SEC. 207. (a) For the purpose of expediting the actual construction of public
works contemplated by this title and to provide a means of financial assistance
to persons under contract with the United States to perform such construction,
the President is authorized and empowered through the Administrator or through
such other agencies as he may designate or create to approve any assignment
executed by any such contractor, with the written consent of the surety or sureties
upon the penal bond executed in connection with his contract, to any national
or State bank, or his claim against the United States, or any part of such claim,
under such contract ; and any assignment so approved shall be valid for all
purposes, not- withstanding the provisions of sections 3737 and 3477 of the
Revised Statutes as amended.

(b) The funds received by a contractor under any advances made in consideration
of any such assignment are hereby declared to be trust funds in the hands of
such contractor to be first applied to the payment of claims of subcontractors,
architects, engineers, surveyors, laborers, and material men in connection with
the project, to the payment of premiums on the penal bond or bonds, and premiums
accruing during the construction of such project on insurance policies taken
in connection therewith. Any contractor and any officer, director or agent of
any such contractor, who applies, or consents to the application of, such funds
for any other purpose and fails to pay any claim or premium hereinbefore mentioned,
shall be deemed guilty of a misdemeanor and shall be punished by a fine of not
more than $1,000 or by imprisonment for not more than one year, or by both such
fine and imprisonment.

(c) Nothing in this section shall be considered as imposing upon the assignee
any obligation to see to the proper application of the funds advanced by the
assignee in consideration of such assignment.

SUBSISTENCE HOMESTEADS

SEC. 208. To provide for aiding the redistribution of the overbalance of population
in industrial centers $25,000,000 is hereby made available to the President,
to be used by him through such agencies as he may establish and under such regulations
as he may make, for making loans for and otherwise aiding in the purchase of
subsistence homesteads. The moneys collected as repayment of said loans shall
constitute a revolving fund to be administered as directed by the President
for the purposes of this section.

RULES AND REGULATIONS

SEC. 209. The President is authorized to prescribe such rules and regulations
as may be necessary to carry out the purposes of this title, and any violation
of any such rule or regulation shall be punishable by fine of not to exceed
$500 or imprisonment not to exceed six months, or both.

ISSUE OF SECURITIES AND SINKING FUND

SEC. 210. (a) The Secretary of the Treasury is authorized to borrow, from time
to time, under the Second Liberty Bond Act, as amended, such amounts as may
be necessary to meet the expenditures authorized by this Act, or to refund any
obligations previously issued under this section, and to issue therefor bonds,
notes, certificates of indebtedness, or Treasury bills of the United States.

(b) For each fiscal year beginning with the fiscal year 1934 there is hereby
appropriated, in addition to and as part of, the cumulative sinking fund provided
by section 6 of the Victory Liberty Loan Act, as amended, out of any money in
the Treasury not otherwise appropriated, for the purpose of such fund, an amount
equal to 2 l/2 per centum of the aggregate amount of the expenditures made out
of appropriations made or authorized under this Act as determined by the Secretary
of the Treasury.

REEMPLOYMENT AND RELIEF TAXES

SEC. 211. (a) Effective as of the day following the date of the enactment of
this Act, section 617 (a) of the Revenue Act of 1932 is amended by striking
out "1 cent" and inserting in lieu thereof " 1 1/2 cents".

(b) Effective as of the day following the date of the enactment of this Act,
section 617 (c) (2) of such: Act is amended by adding at the end thereof a new
sentence to read as follows: " As used in this paragraph the term 'benzol'
does not include benzol sold for use otherwise than as a fuel for the propulsion
of motor vehicles, motor boats, or airplanes, and otherwise than in the manufacture
or production of such fuel."

SEC. 212. Titles IV and V of the Revenue Act of 1932 are amended by striking
out "1934 " wherever appearing therein and by inserting in lieu thereof
" 1935 ". Section 761 of the Revenue Act of 1932 is further amended
by striking out "and on July 1 1933 " and inserting in lieu thereof
"and on July 1, 1933, and on July 1, 1934,".

SEC. 213. (a) There is hereby imposed upon the receipt of dividends (required
to be included in the gross income of the recipient under the provisions of
the Revenue Act of 1932) by any person other than a domestic corporation, an
excise tax equal to 5 per centum of the amount thereof, such tax to be deducted
and withheld from such dividends by the payor corporation. The tax imposed by
this section shall not apply to dividends declared before the date of the enactment
of this Act.

(b) Every corporation required to deduct and withhold any tax under this section
shall, on or before the last day of the month following the payment of the dividend,
make return thereof and pay the tax to the collector of the district in which
its principal place of business is located, or, if it has no principal place
of business in the United States, to the collector at Baltimore, Maryland.

(c) Every such corporation is hereby made liable for such tax and is hereby
indemnified against the claims and demands of any person for the amount of any
payment made in accordance with the provisions of this section.

( d ) The provisions of sections 115, 771 to 774, inclusive, and 1111 of the
Revenue Act of 1932 shall be applicable with respect to the tax imposed by this
section.

(e) The taxes imposed by this section shall not apply to the dividends of any
corporation enumerated in section 103 of the Revenue Act of 1932.

SEC. 214. Section 104 of the Revenue Act of 1932 is amended by striking out
the words " the surtax " wherever occurring in such section and inserting
in lieu thereof "any internal-revenue tax." The heading of such section
is amended by striking out "surtaxes" and inserting in lieu thereof
"internal-revenue taxes." Section 13 (c) of such Act is amended by
striking out "surtax" and inserting in lieu thereof "internal-revenue
tax."

SEC. 215. (a) For each year ending June 30 there is hereby imposed upon every
domestic corporation with respect to carrying on or doing business for any part
of such year an excise tax of $1 for each $1,000 of the adjusted declared value
of its capital stock.

(b) For each year ending June 30 there is hereby imposed upon every foreign
corporation with respect to carrying on or doing business in the United States
for any part of such year an excise tax equivalent to $1 for each $1,000 of
the adjusted declared value of capital employed in the transaction of its business
in the United States.

(c) The taxes imposed by this section shall not apply--
(1) to any corporation enumerated in section 103 of the Revenue Act of 1932
;
(2) to any insurance company subject to the tax imposed by section 201 or 204
of such Act ;
(3) to any domestic corporation in respect of the year ending June 30, 1933,
if it did not carry on or do business during a part of the period from the date
of the enactment of this Act to June 30, 1933, both dates inclusive; or
(4) to any foreign corporation in respect of the year ending June 30, 1933,
if it did not carry on or do business in the United States during apart of the
period from the day of the enactment of this Act to June 30, 1933, both dates
inclusive.

(d) Every corporation liable for tax under this section shall make a return
under oath within one month after the close of the year with respect to which
such tax is imposed to the collector for the district in which is located its
principal place of business or, if it has no principal place of business in
the United States, then to the collector at Baltimore, Maryland. Such return
shall contain such information and be made in such manner as the Commissioner
with the approval of the Secretary may by regulations prescribe. The tax shall,
without assessment by the Commissioner or notice from the collector, be due
and payable to the collector before the expiration of the period for filing
the return. If the tax is not paid when due, there shall be added as part of
the tax interest at the rate of 1 per centum a month from the time when the
tax became due until paid. All provisions of law (including penalties) applicable
in respect of the taxes imposed by section 600 of the Revenue Act of 1926 shall,
in so far as not inconsistent with this section, be applicable in respect of
the taxes imposed by this section. The Commissioner may extend the time for
making the returns and paying the taxes imposed by this section, under such
rules and regulations as he may prescribe with the approval of the Secretary,
but no such extension shall be for more than sixty days.

(e) Returns required to be filed for the purpose of the tax imposed by this
section shall be open to inspection in the same manner, to the same extent,
and subject to the same provisions of law, including penalties, as returns made
under title II of the Revenue Act of 1926.

(f) For the first year ending June 30 in respect of which a tax is imposed
by this section upon any corporation, the adjusted declared value shall be the
value, as declared by the corporation in its first return under this section
(which declaration of value cannot be amended), as of the clos6Jof its last
income-tax taxable year ending at or prior to the close of the year for which
the tax is imposed by this section (or as of the date of organization in the
case of a corporation having no income-tax taxable year ending at or prior to
the close of the year for which the tax is imposed by this section). For any
subsequent year ending June 30, the adjusted declared value in the case of a
domestic corporation shall be the original declared value plus (1) the cash
and fair market value of property paid in for stock or shares, (2) paid-in surplus
and contributions to capital, and (3) earnings and profits, and minus (A) the
value of property distributed in liquidation to shareholders, (B) distributions
of earnings and profits, and (C) deficits, whether operating or nonoperating;
each adjustment being made for the period from the date as of which the original
declared value was declared to the close of its last income-tax taxable year
ending at or prior to the close of the year for which the tax is imposed by
this section. For any subsequent year ending June 30, the adjusted declared
value in the case of a foreign corporation shall be the original declared value
adjusted, in accordance with regulations prescribed by the Commissioner with
the approval of the Secretary, to reflect increases or decreases (for the period
specified in the preceding sentence) in the capital employed in the transaction
of its business in the United States.

(g) The terms used in this section shall have the same meaning as when used
in the Revenue Act of 1932.

SEC. 216. (a) There is hereby imposed upon the net income of every corporation,
for each income-tax taxable year ending after the close of the first year in
respect of which it is taxable under section 215, an excess-profits tax equivalent
to 5 per centum of such portion of its net income for such income-tax taxable
year as is in excess of 12 1\2 per centum of the adjusted declared value of
its capital stock (or in the case of a foreign corporation the adjusted declared
value of capital employed in the transaction of its business in the United States)
as of the close of the preceding income-tax taxable year ( or as of the date
of organization if it had no preceding income-tax taxable year) determined as
provided in section 215. The terms used in this section shall have the same
meaning as when used in the Revenue Act of 1932.

(b) The tax imposed by this section shall be assessed, collected, and paid
in the same manner, and shall be subject to the same provisions of law (including
penalties), as the taxes imposed by title I of the Revenue Act of 1932.

SEC. 217. (a) The President shall proclaim the date of--
( 1) the close of the first fiscal year ending June 30 of any year after the
year 1933, during which the total receipts of the United States (excluding public-debt
receipts) exceed its total expenditures ( excluding public-debt expenditures
other than those chargeable against such receipts ) , or
(2) the repeal of the eighteenth amendment to the Constitution,
whichever is the earlier.

(b) Effective as of the 1st day of the calendar year following the date so
proclaimed section 617 (a) of the Revenue Act of 1932, as amended, is amended
by striking out "1 1/2 cents " and inserting in lieu thereof "1
cent ".

(c) The tax on dividends imposed by section 213 shall not apply to any dividends
declared on or after the 1st day of the calendar year following the date so
proclaimed.

(d) The capital-stock tax imposed by section 215 shall not apply to any taxpayer
in respect of any year beginning on or after the 1st day of July following the
date so proclaimed.

(e) The excess-profits tax imposed by section 216 shall not apply to any taxpayer
in respect of any taxable year after its taxable year during which the date
so proclaimed occurs.

SEC. 218. (a) Effective as of January 1, 1933, sections 117, 23(i), 169, 187
and 205 of the Revenue Act of 1932 are repealed.

(b) Effective as of January 1,1933, section 23(r) (2) of the Revenue Act of
1932 is repealed.

(c) Effective as of January 1,1933, section 23(r) (3) of the Revenue Act of
1932 is amended by striking out all after the word " Territory " and
inserting a period.

(d) Effective as of January 1,1933, section 182(a) of the Revenue Act of 1932
is amended by inserting at the end thereof a new sentence as follows: "
No part of any loss disallowed to a partnership as a deduction by section 23(r)
shall be allowed as a deduction to a member of such partnership in computing
net income."

(e) Effective as of January 1, 1933, section 141 ( c ) of the Revenue Act of
1932 is amended by striking out "except that for the taxable years 1932
and 1933 there shall be added to the rate of tax prescribed by sections 13(a),
201(b), and 204(a), a rate of three fourths of 1 per centum " and inserting
in lieu thereof the following: " except that for the taxable years 1932
and 1933 there shall be added to the rate of tax prescribe by sections 13 (
a) , 201 (b ) , and 204 ( a) , a rate of three fourths of 1 per centum and except
that for the taxable years 1934 and 1935 there shall be added to the rate of
tax prescribed by sections 13 ( a) , 201 (b ) , and 204 ( a) , a rate of 1 per
centum ".

(f) No interest shall be assessed or collected for any period prior to September
15, 1933, upon such portion of any amount determined as a deficiency in income
taxes as is attributable solely to the amendments made to the Revenue Act of
1932 by this section.

(g) In cases where the effect of this section is to require for a taxable year
ending prior to June 30, 1933, the making of an income- tax return not otherwise
required by law, the time for making the return and paying the tax shall be
the same as if the return was for a fiscal-year ending June 30, 1933.

(h) Section 55 of the Revenue Act of 1932 is amended by inserting before the
period at the end thereof a semicolon and the following : "and all returns
made under this Act after the date of enactment of the National Industrial Recovery
Act shall constitute public records and shall be open to public examination
and inspection to such extent as shall be authorized in rules and regulations
promulgated by the President".

SEC 219. Section 500 (a) (1) of the Revenue Act of 1926, as amended, is amended
by striking out the period at the end of the second sentence thereof and inserting
in lieu thereof a comma and the following: " except that no tax shall be
imposed in the case of persons admitted free to any spoken play (not a mechanical
reproduction), whether or not set to music or with musical parts or accompaniments,
which is a consecutive narrative interpreted by a single set of characters,
all necessary to the development of the plot, in two or more acts, the performance
consuming more than 1 hour and 45 minutes of time."

APPROPRIATION

SEC. 220. For the purposes of this Act, there is hereby authorized to be appropriated,
out of any money in the Treasury not otherwise appropriated, the sum of $3,300,000,000.
The President is authorized to allocate so much of said sum, not in excess of
$100,000,000, as he may determine to be necessary for expenditures in carrying
out the Agricultural Adjustment Act and the purposes, powers, and functions
heretofore and hereafter conferred upon the Farm Credit Administration.

SEC. 221. Section 7 of the Agricultural Adjustment Act, approved May 12, 1933,
is amended by striking out all of its present terms and provisions and substituting
therefor the following :
" SEC. 7. The Secretary shall sell the cotton held by him at his discretion,
but subject to the foregoing provisions: Provided, That he shall dispose of
all cotton held by him by March 1, 1936 : Provided further, That notwithstanding
the provisions of section 6, the Secretary shall have authority to enter into
option contracts with producers of cotton to sell to the producers such cotton
held by him, in such amounts and at such prices and upon such terms and conditions
as the Secretary may deem advisable, in combination with rental or benefit payments
provided for in part 2 of this title.
"Notwithstanding any provisions of existing law, the Secretary of Agriculture
may in the administration of the Agricultural Adjustment Act make public such
information as he deems necessary in order to effectuate the purposes of such
Act."

TITLE III-AMENDMENTS TO EMERGENCY RELIEF AND CONSTRUCTION ACT AND MISCELLANEOUS
PROVISIONS

SECTION 301. After the expiration of ten days after the date upon which the
Administrator has qualified and taken office, (1) no application shall be approved
by the Reconstruction Finance Corporation under the provisions of subsection
( a) of section 201 of the Emergency Relief and Construction Act of 1932, as
amended, and (2) the Administrator shall have access to all applications, files,
and records of the Reconstruction Finance Corporation relating to loans and
contracts and the administration of funds under such subsection: Provided, That
the Reconstruction Finance Corporation may issue funds to a borrower under such
subsection ( a) prior to January 23, 1939, under the terms of any agreement
or any commitment to bid upon or purchase bonds entered into with such borrower
pursuant to an application approved prior to the date of termination, under
this section, of the power of the Reconstruction Finance Corporation to approve
applications.

DECREASE OF BORROWING POWER OF RECONSTRUCTION FINANCE
CORPORATION

SEC. 302. The amount of notes, debentures, bonds, or other such obligations
which the Reconstruction Finance Corporation is authorized and empowered under
section 9 of the Reconstruction Finance Corporation Act, as amended, to have
outstanding at anyone time is decreased by $400,000,000.

SEPARABILITY CLAUSE

SEC. 303. If any provision 0f this Act, or the application thereof to any person
or circumstances, is held invalid, the remainder of the Act, and the application
of such provision to other persons or circumstances, shall not be affected thereby.

SHORT TITLE
SEC. 304. This Act may be cited as the " National Industrial Recovery Act."
Approved, June 16, 1933, 11 :55 a.m.